Exam 12: Clusterswhy Do Proximity and Place Matter

These types of clusters are often found in industries such as clothing, where work is characterized by sweatshop conditions and often very high levels of immigrant labor. Firms are involved in tight subcontracting networks, and may also use home-workers.

In industrial location theory, transportation costs are shaped by the ____________ of the materials to be shipped a with that of the final products to be taken to market.

These clusters are characteristic of "new" after-Fordist sectors such as computers and biotechnology. These clusters tend to have a large base of innovative small and medium-sized firms and flexible, highly-skilled labor markets.